I'd have to take issue with your proposed ''social-group'' regulation. Having your uncle or cousin as the local cop is more likely to lead to corruption than it is to efficient policing. I imagine a blind-eye would be turned to crimes committed by a relation. Anyone with experience of ''small-town'' politics would be familiar with this. Such social groups will tend to be self-interested, as any special group is.
Peer regulation is of little use when your peers are ruthless and/or utterly self-interested, e.g. bankers. It would also be of less use in big cities, where people are not surrounded by their extended families...people are too mobile nowadays, in general, for a system of ''family policing'' to be practical.
I think the best form of regulation remains the Rule of Law.... the trust in the system necessary for free markets to exist is best generated, IMHO, by people knowing the ''rules of the game'' and having confidence that these rules will be applied in a fair. transparent and systematic fashion.
Goodrum wrote:The market, not the government, was the most effective tool to discipline big business..
...and just how is that working for your country Brian?
Seriously, how has it, and how is it working for you, say since around Jay Cooke-era, (after all from about out of the G10 countries you guys have the most fragmented regulated financial sector there is).
I will say that in Ireland, government policy played an important role in encouraging reckless lending. Essentially, through their various incentives and pronouncements, the government encouraged home-owning, even for those who could not afford it, as well as encouraging wild-eyed property speculation; they considered the astronomical rise in property values to be a good thing. The whole situation was made much worse through the availability of cheap credit (or ''easy ways to get into debt'') once we joined the euro in 2001.
Despite there being a clear reason for government to change it's policies, they adopted the attitude of ''Yahoo! We'll all be millionaires!''
I don't know how things happened over in the US, but the whole situation is a tricky one, making the blaming of one particular entity, e.g. corporations, over other agents, e.g. people and government, difficult. Of course, while I wouldn't totally blame banks, I wouldn't bail them out either....
Goodrum wrote:That's the question. How is it working for you seeing as how the States have most fragmented regulated financial sector there is...Jay was mentioned because of the similarities to what occured 2008, what has failed to be learnt.
Your financial sector corporations behaviour circa 2008-->...your country has the least regulated financial sector there is, how is it working for you?
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